Digital savvy firms germane to buyers in post-pandemic era: GlobalData

26 Feb '21

2 min read

Pic: Shutterstock

A paradigm shift towards digitisation was already under way before the pandemic. However, the pandemic further accelerated the transformation, as is evident by the marked growth in spending towards digitisation by businesses. Firms with agile digital strategies can reinvent their business models and stay relevant to customers in the new era, says data analytics company GlobalData.

“Remote work, omnichannel commerce, contactless interactions and the consumption of digital content emerged as the key growth areas during the pandemic. This has shown the difference between the business models of digital leaders and laggards across industries, reiterating the trend – digitise or perish,” Sudheshna Karukula, senior disruptive tech analyst at GlobalData, said in a press release.

In retail, e-commerce companies are clear winners due to a significant shift to online shopping, whereas those with large number of physical stores like H&M, IKEA and Home Depot are lagging behind, according to the release.

Amazon started licensing its cashier-less technology ‘Just Walk Out’ to other retailers. The technology, which is an amalgamation of cameras, sensors, computer vision techniques and deep learning, allows retailers to automate purchase, check out and payments. Most of the retailers obtained the technology license to eliminate checkout lines and waiting times.

In banking, digitally advanced banks such as DBS and P2P lending start-ups like Lending Club, and money management firms like Yolt have witnessed moderate positive impact.

Yolt redesigned its app after noticing a shift in consumer financial habits enforced by the pandemic. It introduced online savings account and contactless card to help shoppers save on their purchases. Users can obtain cashback from partnered retailers, which is automatically converted into savings.

“With contactless-everything becoming the new normal, the Covid-19 pandemic can be a reality check for digital laggards. Companies can take digital cues from those thriving during the pandemic, even for cross-industry applications. The innovations and digital business models born out of the pandemic-induced necessity can help companies stay competitive even in the post-Covid-19 era,” Karukula added.

Fibre2Fashion News Desk (DS)

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